In the
United States Court of Appeals
For the Seventh Circuit
____________________
No. 15‐2925
ERIC ALVARADO,
Plaintiff‐Appellant,
v.
CAROLYN W. COLVIN, Acting Commissioner of Social Securi‐
ty,
Defendant‐Appellee.
____________________
Appeal from the United States District Court for the
Central District of Illinois.
No. 1:14‐cv‐01090 — James E. Shadid, Judge.
____________________
ARGUED APRIL 1, 2016 — DECIDED SEPTEMBER 1, 2016
____________________
Before POSNER, EASTERBROOK, and WILLIAMS, Circuit Judg‐
es.
WILLIAMS, Circuit Judge. In 1993, Eric Alvarado was
granted disability benefits due to his impairments, which
included a severe learning disorder. In 2004, the Social Secu‐
rity Administration stopped paying those benefits after de‐
2 No. 15‐2925
termining that, despite his severe learning disorder, Al‐
varado could do certain relatively simple jobs. Because that
determination was supported by substantial evidence, we
affirm.
I. BACKGROUND
Alvarado was born in 1967. He was first awarded disabil‐
ity benefits in 1993, when it was determined that he had suf‐
fered from severe impairments since birth. He was granted
childhood disability benefits and Supplemental Security In‐
come. The Social Security Act requires the Social Security
Administration to periodically review whether a recipient
remains disabled. Alvarado’s eligibility was reviewed and
affirmed in 1999. But in a 2004 review, the Administration
determined that his disability had ended, so his benefits
were discontinued.
Alvarado challenged that determination, but a hearing
officer upheld it. After a hearing that included testimony
from Alvarado, his family and friends, and experts, an Ad‐
ministrative Law Judge also upheld the decision. The Ap‐
peals Council denied review and Alvarado sought review in
federal court. But based on the parties’ agreement, the dis‐
trict court ordered the case remanded for further fact find‐
ing. On remand, the same ALJ made the same determina‐
tion—that Alvarado’s disability had ended.
The ALJ wrote a 39‐page opinion explaining her decision.
In short, she assumed the correctness of the prior determina‐
tions that Alvarado was disabled, but found that the evi‐
dence showed his disability had ended. She found that he
continued to suffer from a severe learning disorder, which
prevented him from performing many jobs, but which did
No. 15‐2925 3
not prevent him from doing simple jobs that did not require
interaction with the public. Because a significant number of
such jobs exist in Illinois, she concluded that Alvarado was
not disabled. The Appeals Council denied review, a federal
magistrate judge recommended affirmance, the district
judge affirmed, and this appeal followed.
II. ANALYSIS
A. ALJ Did Not Violate Remand Order
Before we address the merits, we note that many of Al‐
varado’s arguments proceed from a faulty premise: that the
ALJ violated the remand order. Alvarado suggests that the
order barred the ALJ from evaluating any evidence dating
from before 1999 (when Alvarado’s eligibility was last af‐
firmed). But that is not what the order says. To the contrary,
by directing the ALJ to compare evidence from before 1999
with evidence from after 1999, the order required the ALJ to
evaluate the earlier evidence.
To be sure, the order limited the scope of the remand, but
the limit was not exceeded. In the typical case, the Admin‐
istration cannot terminate a recipient’s benefits without find‐
ing that he experienced some “medical improvement” that
allows him to work even though he previously could not. See
20 C.F.R. § 404.1594(c). There are exceptions to the medical
improvement requirement, under which a recipient can be
found newly ineligible even if he did not improve medically.
The most relevant exception is where “substantial evidence
demonstrates that any prior disability decision was in error.”
Id. § 404.1594(d)(4). The remand order limited the ALJ’s abil‐
ity to terminate Alvarado’s benefits on the basis of an excep‐
4 No. 15‐2925
tion to the medical improvement requirement.1 The ALJ did
not violate the order because she did not apply any excep‐
tion—she explicitly found that Alvarado had improved.
B. Substantial Evidence Supports ALJ’s Decision
Because the Appeals Council denied review, we review
the ALJ’s decision directly. Tumminaro v. Astrue, 671 F.3d 629,
632 (7th Cir. 2011). We will affirm as long as the ALJ’s find‐
ings were supported by “substantial evidence,” 42 U.S.C.
§ 405(g), which is “such relevant evidence as a reasonable
mind might accept as adequate to support a conclusion,”
Richardson v. Perales, 402 U.S. 389, 401 (1971). We will not de‐
cide the facts anew, reweigh evidence, or substitute our
judgment for the ALJ’s. See, e.g., Pepper v. Colvin, 712 F.3d 351,
362 (7th Cir. 2013).
To determine whether a benefits recipient remains eligi‐
ble, ALJs follow an eight‐step process for childhood disabil‐
ity benefits, and a seven‐step subset of that process for Sup‐
plemental Security Income. 20 C.F.R. §§ 404.1594(f);
416.994(b)(5). The regulations fully describe the steps, as
does the magistrate judge’s written report and recommenda‐
tion, so we do not belabor the details. The focus for our pur‐
poses is on the ALJ’s findings concerning the effects of Al‐
varado’s learning disorder. The ALJ found that Alvarado had
a severe learning disorder, which would exclude him from
many jobs. But the ALJ found that the disorder was not
1 The ALJ was permitted to apply an exception only if the conditions
for reopening Alvarado’s earlier decision were met. See 20 C.F.R.
§ 404.988. That would be the case, for example, if the ALJ found Al‐
varado’s earlier eligibility decisions had been procured by fraud. Id.
§ 404.988(c)(1).
No. 15‐2925 5
completely disabling, and that Alvarado could work a job so
long as: (i) it could be demonstrated to him (rather than ex‐
plained orally or in writing); (ii) it did not require interaction
with the public; (iii) it did not involve complex or detailed
processes; and (iv) it did not involve processes that changed
significantly from day to day. The question for us is whether
that finding was supported by substantial evidence.
1. Evidence Supporting Finding that Alvarado
Remained Disabled
i. Medical Opinions
To be sure, the record contained evidence favorable to
Alvarado’s claim. Most notably, Dr. Luke Dalfiume, a li‐
censed clinical psychologist, opined that given Alvarado’s
difficulties reading, writing, and doing math, and given his
slow processing speed, it was difficult to imagine a job that
would be “a good fit.” Alvarado argues that the ALJ gave Dr.
Dalfiume’s opinion “no weight,” but that is not right. The
ALJ said that she considered Dr. Dalfiume’s opinion, and the
ALJ’s written opinion shows that to be true. For example, on
the basis of Dr. Dalfiume’s opinion about Alvarado’s anxiety,
avoidant personality, and attention span, the ALJ found that
Alvarado could not perform jobs that required interaction
with the public or complex or detailed job processes, or job
processes that changed significantly from day to day. And
consistent with Dr. Dalfiume’s opinion, the ALJ found that
Alvarado could not do a job that required reading, writing,
or math.
The ALJ did not, however, give controlling weight to Dr.
Dalfiume’s opinions, for several reasons. The ALJ noted that
Dr. Dalfiume was hired by Alvarado’s lawyer, specifically to
6 No. 15‐2925
bolster Alvarado’s claim to disability benefits. As Alvarado
notes on appeal, the fact that a doctor is hired by a claimant
is an insufficient reason, on its own, to reject the doctor’s
opinion. Punzio v. Astrue, 630 F.3d 704, 712 (7th Cir. 2011).
But the ALJ did not rely on the hiring relationship alone. In‐
stead, she gave several reasons for discounting some of Dr.
Dalfiume’s opinions.
For example, the ALJ noted that Dr. Dalfiume never treat‐
ed Alvarado. See 20 C.F.R. § 404.1527(c)(2) (opinions from
treating doctors are generally given more weight than those
from non‐treating doctors). The ALJ also noted that Dr. Dal‐
fiume’s opinions in 2012 contradicted his own opinion from
2008, and contradicted opinions that other doctors rendered
in 1999 and 2004.2 See Skarbek v. Barnhart, 390 F.3d 500, 503–
04 (7th Cir. 2004) (ALJ can discount medical opinion for be‐
ing inconsistent with other medical opinions, as long as ALJ
“minimally articulates” the reasons for discount). The ALJ
also noted that Dr. Dalfiume’s analysis was based on subjec‐
tive reports from Alvarado and his mother, rather than ob‐
jective measurements.3 See, e.g., White v. Barnhart, 415 F.3d
2 The ALJ noted that Dr. Dalfiume’s conclusions in 2012 were much
bleaker than they were in 2008, and that Dr. Dalfiume did not give rea‐
sons for the differences. In 2004, Dr. William Hilger, a state‐hired consul‐
tative psychologist, concluded that Alvarado was malingering—a con‐
clusion that the ALJ did not adopt outright but did refer to in her opin‐
ion. And in 1999, Dr. Valjean Cashen, a licensed clinical psychologist,
opined that Alvarado had a learning disorder but could do “entry‐level”
jobs. (Given that conclusion from Dr. Cashen, and its similarity to the
ALJ’s own conclusions, Alvarado’s separate argument that the ALJ gave
too little weight to Cashen’s opinion is unavailing.)
3 The ALJ noted that the circumstances may have given Alvarado
and his mother greater‐than‐typical motivation to portray Alvarado as
No. 15‐2925 7
654, 659 (7th Cir. 2005) (permissible to discount medical
opinion that is based on subjective complaints); see also 20
C.F.R. § 404.1527(c)(3). Finally, the ALJ noted that Dr. Dal‐
fiume was not an expert in “vocational issues,” so his con‐
clusion that no jobs would be a “good fit” was beyond his
expertise. See Loveless v. Colvin, 810 F.3d 502, 507 (7th Cir.
2016) (whether claimant can perform jobs in the economy is
a question for the Administration, not medical experts); 20
C.F.R. § 404.1527(d). These were permissible reasons for the
ALJ to give less than controlling weight to Dr. Dalfiume’s
opinion.
ii. Lay Testimony
Alvarado testified and was supported by testimony from
his mother and brother, Melody Justus (an employee of his
mother’s flower shop), and the supervisor for Norman
Township (where Alvarado lived). The ALJ permissibly re‐
jected the parts of this testimony—from Alvarado’s brother
and the township supervisor—that were in the nature of ex‐
pert vocational opinions, rather than fact testimony about
Alvarado. On the facts, the witnesses testified that Alvarado
could be forgetful and easily distracted. For example, Al‐
varado testified that he sometimes forgets to buy certain
grocery items, even when he uses a list. He also said that his
previous work mowing lawns was difficult for him because
“considerably impaired.” Specifically, at the original administrative
hearing (not the hearing on remand), the vocational expert opined that
there were hundreds of thousands of jobs that Alvarado could do. In
other words, that hearing did not go well from Alvarado’s perspective.
The subjective statements that Dr. Dalfiume relied on were given by Al‐
varado and his mother just two days after that hearing.
8 No. 15‐2925
he would forget how different customers wanted their lawns
mowed.
Justus, and Alvarado’s mother and brother, all testified
that it takes Alvarado longer than most people to complete
tasks. They admitted that Alvarado worked at the flower
shop, but said that was only so he would have something to
do, not because his work was beneficial to the shop.4 Similar‐
ly, though Alvarado admitted to driving regularly, his wit‐
nesses said that he typically went places that were familiar to
him because he could get lost going new places, as he did
not do well with maps or directions. According to his moth‐
er, Alvarado could not remember a sequence of instructions
given to him orally, but he could do jobs once they were
demonstrated to him. And Alvarado testified to some physi‐
cal limitations—vision problems, bad coordination, and
shaky hands. Justus also testified that Alvarado had bad co‐
ordination.
The ALJ credited some of this testimony—for example,
that Alvarado could not remember a sequence of instruc‐
tions given to him orally, and that he did better in familiar
environments as opposed to new ones. Indeed, the ALJ
found that Alvarado “has intellectual deficits that would
impose significant restriction on the type of work he could
reliably perform.” But the ALJ also discounted some of the
fact testimony, particularly that of his mother and Justus.
The ALJ noted that these witnesses stood to personally gain
4 Alvarado did not tell the Administration about his work at the
flower shop. (A claimant’s work activities are obviously relevant to the
ongoing evaluation of the claimant’s abilities.) Instead, the Administra‐
tion was tipped off by Justus’s disgruntled former boyfriend.
No. 15‐2925 9
from Alvarado’s receipt of benefits (because Alvarado lived
with his mother for a while before her death, after which he
lived with Justus5). See Stepp v. Colvin, 795 F.3d 711, 720 (7th
Cir. 2015) (permissible to discount testimony based on a wit‐
ness’s “incentive to exaggerate”). And more importantly in
the ALJ’s view, Alvarado’s mother and Justus admitted to ly‐
ing, forging Alvarado’s signature, and falsifying receipts, as
part of a scheme to evade taxes, which the ALJ found
demonstrated their willingness to be untruthful in pursuit of
government benefits. Accordingly, the ALJ looked skeptical‐
ly on any testimony from those two witnesses that was not
corroborated by other evidence. That may have been a harsh
judgment of their credibility, but it was tied to evidence in
the record and was not patently wrong, so we may not dis‐
turb it. See Loveless, 810 F.3d at 508; Curvin v. Colvin, 778 F.3d
645, 651 (7th Cir. 2015); Pepper, 712 F.3d at 367.
2. Evidence Supporting Finding that Alvarado’s
Disability Had Ended
The ALJ’s conclusion that Alvarado’s learning disorder
was not completely disabling—and that Alvarado could do
certain simple jobs—was supported by substantial evidence.
As previously mentioned, Alvarado’s mother testified that
he had trouble remembering a sequence of oral or written
instructions, but said that if he was shown how to do a job, he
could do it well. His witnesses also testified that, though it
might take him longer than other people to do tasks, he per‐
severed until the task was complete.
5 Alvarado argues that Justus “would get no gain” from Alvarado’s
benefits “because she does not support him.” If that is true, it under‐
mines Justus’s credibility because it is contrary to her own testimony.
10 No. 15‐2925
To the ALJ, more important than that testimony was the
evidence of Alvarado’s actual activities. Alvarado obtained a
driver’s license and drove regularly, including by himself,
and including on long trips (to Indianapolis and New Orle‐
ans). He was able to travel by public transportation, includ‐
ing by plane and train. He obtained an associate’s degree
and was only a few credits short of a bachelor’s degree. Al‐
varado notes that his schools provided him with many ac‐
commodations, and one school was specifically for students
with learning disabilities. But it is also true that he was able
to live alone, in a different state from his family, while at‐
tending his various schools.
For years, Alvarado assisted at his mother’s flower shop,
picking up flowers from wholesalers (typically by himself),
and making deliveries to customers (sometimes by himself,
though not typically). And he performed chores both at
home and at the flower shop—he built furniture, prepared
simple meals, took out the trash, mowed the lawn, put away
the dishes, and (occasionally) did his own laundry. He also
helped a friend run for office by passing out campaign litera‐
ture. For leisure, he watched television, played computer
games, visited political websites, and bought and sold things
through eBay.
To be sure, the preceding list includes activities of daily
living, and we have cautioned ALJs not to equate such activi‐
ties with the rigorous demands of the workplace. See, e.g.,
Bjornson v. Astrue, 671 F.3d 640, 647 (7th Cir. 2012); Spiva v.
Astrue, 628 F.3d 346, 352 (7th Cir. 2010). But it is entirely
permissible to examine all of the evidence, including a
claimant’s daily activities, to assess whether “testimony
about the effects of his impairments was credible or exag‐
No. 15‐2925 11
gerated.” Loveless, 810 F.3d at 508; see also 20 C.F.R.
§ 404.1529(c)(3)(i) (agency considers daily activities to evalu‐
ate severity of claimant’s symptoms). So, for example, it was
permissible for the ALJ to note that Alvarado was given
“critical” tasks at the flower shop (picking up and delivering
flowers), and to find that this undercut testimony from wit‐
nesses suggesting he was not capable of doing anything in a
workplace. (The ALJ’s reasoning was permissible even
though the flower shop was owned by Alvarado’s mother.
See 20 C.F.R. § 404.1573(c)(6) (claimant’s work activities can
be considered even if he was only given the opportunity to
work due to a family relationship).)
So substantial evidence supported the ALJ’s findings
concerning Alvarado’s abilities. The ALJ incorporated those
findings into a question posed to a vocational expert, who
opined that someone with Alvarado’s limitations could work
as a house cleaner, car washer, or kitchen helper—and over
24,000 such jobs exist in Illinois. In response to further ques‐
tioning, the expert testified that those jobs could be done by
someone with below‐average mental abilities, and by some‐
one who lacked vision in one eye and had problems with
hand‐eye coordination. Indeed the expert said that, in his
thirty years of experience, though he had seen people who
were physically unable to do such jobs, he had never encoun‐
tered anyone who could not handle the mental demands.
Alvarado’s appellate briefing marches through a long history
of evidence to demonstrate that Alvarado has a severe learn‐
ing disorder—a contention with which the ALJ agreed—but
does not grapple with the expert’s testimony that someone
with Alvarado’s limitations can nonetheless do some jobs.
12 No. 15‐2925
Because substantial evidence supported the ALJ’s find‐
ings concerning Alvarado’s limitations, and those limitations
were incorporated into the questions posed to the vocational
expert, the expert’s testimony is substantial evidence sup‐
porting the ALJ’s decision. See, e.g., Schmidt v. Astrue, 496
F.3d 833, 846 (7th Cir. 2007). Alvarado complains that the
ALJ’s hypothetical question did not note that Alvarado pro‐
cesses information slowly and requires supervision. But the
ALJ was only required to incorporate limitations that she
found supported by the evidence. E.g., Simila v. Astrue, 573
F.3d 503, 521 (7th Cir. 2009). And in any event, Alvarado has
not shown how such limitations would disqualify him from
a job as a car washer or kitchen helper.6 See Spiva, 628 F.3d at
353 (harmless error review applies in Social Security cases).
III. CONCLUSION
The decision of the district court is AFFIRMED.
6 Alvarado offers no support for the implication in his briefs that
someone who processes information slowly would necessarily wash
cars, sweep floors, or take out trash slowly.